What Is Present Value in Kansas Divorce Cases?

By Teo Spengler

A divorce means the end of the marital community and, in Kansas, as in other states, the property belonging to that community must be divided between the spouses. Kansas courts generally divide marital property equally between the spouses, but before any division can be made, the present value of the property must be established.

A divorce means the end of the marital community and, in Kansas, as in other states, the property belonging to that community must be divided between the spouses. Kansas courts generally divide marital property equally between the spouses, but before any division can be made, the present value of the property must be established.

Property Division in Kansas

Under Kansas law, all property of both spouses becomes marital property subject to division when a divorce is filed. In practice, Kansas courts generally treat property a spouse brought into the marriage as that spouse's separate property, and divide only the property acquired during the marriage. The present value of marital property -- the value of the asset as of the time of the divorce -- must be established before division takes place.

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Present Value

Present value is a term of art in Kansas law that incorporates the potential future value of property. Some property has a clear present value, such as bank accounts or real estate. But money that may be received in the future has a lower present value than the same amount of money in the bank. Figuring out the present value of future benefits, like retirement pensions, is a job for an accountant. Future benefits must be reduced to their present value by taking into account many factors, including the receiving spouse's life expectancy and the possibility that he may die before receiving the pension.

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How to Divide Pension Income in a Divorce in Illinois

References

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Divorce & Bank Accounts

Sharing of finances can be an important component to marriage. Using joint bank accounts can provide greater flexibility for paying expenses, as well as give the couple a feeling of interdependence. However, if the couple decides to get divorced, each spouse may attempt to claim ownership of money held in these accounts. Understanding the difficulties that courts typically encounter when attempting to classify bank accounts during property division, will help prepare you for your divorce.

Texas Divorce Laws on House Disputes

Because Texas is a community property state, courts in Texas generally divide property equally following a divorce. However, the situation is more complicated when it comes to a house. Which spouse gets the house is largely dependent on when the home was purchased as well as where the mortgage payments are coming from. In some cases, the spouse who does not get the house will instead receive a greater portion of the remaining marital property, while the spouse with the house may receive more of the marital debt.

How to Split the Pension in a Divorce

Unlike other retirement accounts, dividing a pension is often difficult because it’s hard to place a value on what the pension might be worth in the future, and some pensions are not guaranteed until the employee spouse has worked for the company for a certain number of years. For example, in most circumstances, a military service member does not receive his retirement benefits until he has served for at least 20 years.

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